Saudi tourism shows strong growth with low environmental impact: report 

Saudi Arabia’s tourism sector exhibits significantly lower greenhouse gas emissions compared to the broader Middle East and North Africa region, and these emissions are consistently decreasing. Supplied
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Updated 25 October 2023
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Saudi tourism shows strong growth with low environmental impact: report 

RIYADH: Saudi Arabia’s tourism industry is making significant strides, contributing 6.4 percent to the annual gross domestic product while emitting only 3.3 percent of global greenhouse gases, according to a new research. 

A report titled “The Environmental Impact of Global Tourism” places the Kingdom at the 15th rank globally for the most significant reduction in emission intensity.  

The first-of-its-kind analysis was jointly presented by Saudi Minister of Tourism Ahmed Al-Khateeb and Julia Simpson, president of the World Tourism and Travel Council, during the Future Investment Initiative held in Riyadh. 

The document evaluates the environmental impact of travel and tourism in 185 countries, spanning the years 2010 to 2021, with 2019 serving as a benchmark for insights into the sector’s sustainability. 

“Now we know the starting point,” stated Al-Khateeb, adding that “one of the challenges that the sector was facing is — how do we track and what is the starting point, how do we monitor what works and what doesn’t work?”  

The report highlights that Saudi Arabia’s tourism sector exhibits significantly lower greenhouse gas emissions compared to the broader Middle East and North Africa region, and these emissions are consistently decreasing.  

“Saudi Arabia will be investing heavily in this sector which is used to represent 3 percent of the gross domestic product in 2019. We want to take this 3 percent to 10 percent in 2030,” the minister said. 

He said tourism in Saudi Arabia is relatively new, with the issuance of tourist visas commencing in September 2019. This positions the Kingdom uniquely, as it can develop a sustainable industry from the outset, avoiding the need for retrofitting sustainability measures. 

Referring to the report as a “groundbreaking piece of work,” Simpson said: “Saudi Arabia is starting a pivotal major journey and pivoting a major part of its economy to tourism, investing $800 billion, and it’s almost like starting with a blank sheet of paper.”  

Speaking on the sidelines of FII, she told Arab News: “With major injections of funds and major redirection, and I think when you start something like that you are in a better position to say how can we do this really well.” 

Simpson stressed the importance of decoupling the sector’s growth from its environmental impact, which the report now makes possible. 

Globally, the findings reveal that while greenhouse gas emissions in tourism increased at an average rate of 2.5 percent annually, reaching 8.1 percent in 2019, the emission intensity of the sector consistently decreased.  

In 2010, every dollar generated in tourism produced 0.62 kg of emissions, but by 2019, this had fallen to 0.53 kg, demonstrating that sector growth is becoming less carbon-intensive.  

Nonetheless, 15 percent of greenhouse gas emissions from tourism and travel can be attributed to energy consumption. This underscores the critical importance of the sector using this benchmark as a driver to “switch our energy to renewables as soon as possible,” as highlighted by the WTTC president. 

The value of the data of this report and the implications of it do not impact Saudi alone. The Ministry of Tourism, along with the WTTC “do not only have a commitment to be sustainable in the country, but are helping the world by providing data of 184 countries globally,” Chief Special Advisor to the Saudi Tourism Minister, Gloria Guevara, told Arab News. 

While the sector aims to double its contribution to the global GDP in the next decade, the research highlighted that in 2019, global tourism was responsible for 8.1 percent of greenhouse gas emissions and constituted a 10.6 percent share of the total energy footprint associated with travel and tourism. Guevara underscored that this data illustrates that the sector, in proportion to its productivity, emits a relatively lower amount of carbon emissions.

In accordance with the Kingdom's sustainability agenda, as underscored by Guevara, this commitment is considered “very important,” as it necessitates that every initiative adheres to the mandate of the Crown Prince for sustainability. 

The World Tourism Council, in collaboration with Saudi Arabia, is facilitating opportunities for major hoteliers to meet their procurement needs by enabling global hotel companies to source all their energy requirements from a single global renewable energy provider.  

This approach eliminates the need for negotiating individual agreements with each country, streamlining the process and enhancing sustainability efforts in the hotel industry. 

The report seeks to address a data gap that was previously uncharted for many communities worldwide due to its clarity and ongoing insights. Guevara noted that “before this report, we had two reports, they didn’t match, and it was complicated.” 

“It’s easy to know what works if you have the research, but we didn’t have good research...this is why Saudi decided to fund this report,” she concluded. 


New SPARK launch ushers Eastern Province from black gold to EV charging and AI mobility

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New SPARK launch ushers Eastern Province from black gold to EV charging and AI mobility

DAMMAM: The lavender carpet was rolled out and the symbolic shovels were placed in decorative sandboxes as Smart Mobility broke ground, bringing Saudi-made EV charging to life at its first manufacturing facility at King Salman Energy Park in Dammam.

As part of the ceremony, Smart Mobility inaugurated SPARK’s first electric vehicle charging station.

The project brought together Foxconn Interconnect Technology, a unit of Taiwan’s Foxconn that makes components used for connectivity, and Saudi’s Saleh Suleiman Alrajhi & Sons. 

It also represented a significant milestone in supporting foreign investment in the Kingdom and a major step toward localizing advanced manufacturing capabilities in order to support the rapidly-growing EV market.

“As we gather today to celebrate a groundbreaking of an important edition in this ecosystem …we’re creating a community— with all that comes with a community,” SPARK President and CEO Mishal Al-Zughaibi said.

He highlighted the park’s proximity to the Kingdom’s core energy infrastructure.

It will be headquartered in the Eastern Province, notably near to where Aramco’s Well No. 7, later named “Prosperity Well,” struck black gold in 1938, six years after the country unified as a Kingdom. That discovery changed the country — and the world. 

In recent years, there has been a tremendous effort to diversify beyond oil and, once again, the Eastern Province is at the forefront, but this time, it is using innovation and AI to catapult the Kingdom into that new realm. 

The location was also ideal, it was noted, on several levels, including how it would allow for ample access to ports, and the planned integration with the future GCC Railway network would additionally create a unified regional manufacturing and export corridor. 

According to Smart Mobility, SPARK facility was created with the aim to produce Saudi-made EV charging solutions, including the Charging Point Management System. Three products are already certified by the Saudi Standards, Metrology and Quality Organization. 

Launching in 2026, the project aims to align with Vision 2030 and to support local content goals, which will be overseen by the Local Content and Government Procurement Authority.

Smart Mobility CEO, Prince Fahad Nawaf Al Saud, who was on hand, said the decision to build at SPARK was strategic.

“SPARK is the Kingdom’s primary hub for energy, logistics and industrial innovation. For EV infrastructure to scale reliably, it must be integrated with the country’s most critical energy assets,” he said.

Prince Fahad also addressed the evolving and morphing nature of the industry, saying: “Mobility is being reshaped by artificial intelligence. Vehicles are becoming intelligent systems that think, react and connect. Level-4 autonomous capability is accelerating globally and these systems depend on electric platforms.”

He added that if the Kingdom aims to lead in AI, automation and smart city technologies, it must develop EV infrastructure as a foundational national pillar.

“EVs are not simply a fuel alternative — they are the operating system of the AI era,” he said.

Prince Fahad stated: “This groundbreaking ceremony is not only a milestone for Smart Mobility, it is a milestone for the Kingdom.”

He added: “Guided by his Royal Highness Crown Prince Mohammed bin Salman, we built this with the support from the Ministry of Energy, Ministry of Industry, and Ministry of Investment and many government entities that continue to empower our national ambitions to localization and advanced manufacturing.” 

Continuing to address the crowd, Prince Fahad said: “Some people in Saudi love petrol cars, fuel is cheap — why would anyone shift it to electric? And they are right (to question that). Traditional vehicles are still deeply loved, but we must also recognize the truth.” 

The truth, to him, is that AI is “no longer science fiction,” it is reality now. “We are entering an age where we must respond quickly to global changes … we have much work ahead to test, to certify, to scale and to deliver on the promise,” he said.

“The world is entering a new chapter defined not by horsepower but by computing powe r— and Saudi Arabia must lead, not follow in this transition,” Prince Fahad added.. 

FIT Chairman and CEO Sidney Lu noted that next year the Chinese calendar will welcome the Year of the Horse, an apt metaphorical transition as it signals powerfully moving forward from old to now.

He was excited to be on the ground on his first visit to the Eastern Province. 

“FIT brings decades of experience in precision manufacturing, high-reliability electronics, and large-scale global production,” Lu said, adding: “Our shared objective is clear: bring world-class technologies into Saudi Arabia, embed them locally and position Saudi-made solutions for future export.”

While Lu headed back to his home in Taiwan following the meeting “to recharge,” he said the joint venture will be showcasing FIT’s global manufacturing expertise with Saudi Arabia’s industrial ambitions — and that gives him much energy. 

 “I love this place. Every time I come over here, I get inspired; inspired by the spirits, by the energy, by the youth. And I really get inspired with how people are willing to move forward,” Lu told Arab News.